Bad idea, or good idea poorly executed?
The Power of Securitized Credit in Diversifying Fixed Income Portfolios
Not all private credit is the same—in this Market Overview & Analysis we explore the nuances of the investment grade private credit market.
It may take some time for the markets to find their bottom. However, our recession indicators are not rising, our cycle indicators are not flashing warnings and our realtime activity indicators say this is a technical selling correction that will exhaust itself.
The latest proposal could have a disproportionate impact on small and medium sized insurers.
As we enter 2018, the macro environment continues to remain supportive for credit markets generally. However, the prolonged stretch of low volatility has driven yield-hungry investors to overlook potential risks. Against this backdrop, we believe the most significant risk in the loan market resides in CCC and below-rated loans, as any unexpected uptick in volatility skews risk significantly to the downside.
When ﬁnancial market historians look back at 2017, the year probably will be highlighted for its tightly compressed levels of volatility. Another notable aspect of the year is that, heading into late December, there has not been a single month of negative returns for the S&P 500 index.
An unconstrained opportunity set should not equate to unconstrained risk. In this analysis, we explain why clearly defined risk tolerances, not specific return targets, are most important when approaching today's challenging fixed income markets.
The U.S. housing market still has meaningful upside. In fact, from several perspectives, we are still in the recovery phase. Against a robust economic backdrop, we believe securitized credit is a compelling way for investors to diversify a broader credit portfolio—yet the potential benefits of the asset class remain broadly misunderstood. In this analysis, we reveal why we believe securitized credit has become a “through-the-cycle” allocation.
Many investors dislike return of capital (ROC) because they think it is just a return of the original investment minus fees. But sometimes ROC can be favorable to your clients; this Insight can help you determine when.